Anushka Rathod Instagram – GOOD NEWS FOR SALARIED EMPLOYEES!
You could save thousands in taxes
Check out the full reel to understand the impact
For more clarity, here’s a simple breakdown
Applicable only under the OLD tax regime
1. How HRA exemption is calculated
HRA exemption is the lowest of the following three:
1. Actual rent paid minus 10% of basic salary
2. Actual HRA received from the employer
3. 40% or 50% of basic salary (depending on your city)
Example (assuming you live in Bangalore)
• Actual HRA received: ₹3,60,000
• 50% of basic salary: ₹3,75,000 (Earlier it was 40% i.e. 300,000 for bangalore)
• Rent paid minus 10% of salary: ₹3,45,000
The lowest amount here is ₹3,45,000
So, the HRA exemption will be ₹3,45,000
Earlier, the exemption would have been ₹3,00,000
Now it increases to ₹3,45,000, leading to direct tax savings
2. Other important assumptions
1. 50% basic salary is the minimum as per the new labour code and can be higher
2. PF is calculated at 12% of the basic salary
Benefits depend on whether your employer agrees to restructure your salary
Please note, tax calculations can be complex
Always consult your HR or CA before taking any decision
If you have any doubts about this example, let me know in the comments
[Anushka Rathod, Finance, Tax, India, Employee]
#anushkarathod #finance #tax #india #employee | Posted on 26/Feb/2026 19:39:51
